Nearly $4 billion worth of bitcoin was transferred from long-term storage to the chain in November 2020.
Nearly 200,000 BTCs stored between 2013 and 2015 are now active again.
However, the data shows that the proportion of Bitcoin HODlers is actually increasing.
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About $4 billion of Immediate Bitcoin that has been inactive for five to seven years has been removed from long-term storage following the massive price hike in November.
Unchained Capital revealed the news via a data visualization on December 3. Unchained’s „HODL Waves“ metric measures Bitcoin activity by storage duration. The total share of Bitcoin supply blocked in storage for between five and seven years increased from 5.48% to 4.67% between November 1 and November 30.
Nearly 1% of #bitcoin’s total supply left long-term storage (> 1 year at the same address) during the price increase from $13,700 to $1,670 in November.
61.43% of #bitcoin’s supply has remained unchanged for > 1 year.
Some long-term investors benefit
Investors who locked in their crypto-money in 2013 did so at a price level averaging between $134 and $1,151. In 2014 and 2015, the average price was between $500 and $750.
With the closing of Bitcoin at $18,702 on November 30, long-term investors would have earned between 1,524% and 13,856%.
Bitcoin All-Time Price Chart | Source: TradingView
According to the HODL Waves calculation, 1.19% of the total bitcoin supply has left this storage category and has become chain-active.
Based on the current total supply of ~ 18,561,000 BTCs at the time of publication of this article, this represents more than 220,000 BTCs, with a present value of approximately $4.2 billion.
Age distribution of Bitcoin UTXO (Source: HODL Waves)
Bitcoin HODLers don’t give up
The data reveal a mix of long-term strategies. The vast majority of long-term investors are not only holders, but also increase their holdings.
While the previous five to seven year long-term storage category fell by more than 1%, the ten year storage category actually increased by 0.19%, from 9.73% to 9.92%.
The long-term storage category between seven and ten years also increased by 0.2%, from 7.08% to 7.28%. Similarly, the three to five year storage category jumped 0.69% from 10.06% to 10.85%.
In fact, the data shows that it is mainly the short-term storage categories that experienced declines in holdings. Overall, more than 61% of Bitcoin’s total supply has not moved at all for more than a year.
According to some, these data seem to validate the position that Bitcoin could be more considered as a valuable asset pool and inflation hedge as opposed to a mere speculative instrument.
On November 19, BeInCrypto reported that the Glassnode data revealed a huge increase in the creation of new Bitcoin addresses, with the number of new Bitcoin addresses only increasing in January 2018.
Chain Analyst Willy Woo predicted that Bitcoin’s Network Value Transaction (NVT) rate, which was at an all-time high in mid-November, was due to the presence of „underlying long-term investors“. This would lead Bitcoin to a new historical record, which then took place on November 30.